WebMD raises full-year guidance

BenFox

WebMD Health Corp.
WBMD, -0.74%
again raised its revenue forecast for the year and now predicts it will post a profit, saying demand for advertising and sponsorship services has grown, particularly from biopharmaceutical customers.

The health-information website provider now expects a profit for the year of $3 million to $11 million, compared with its previous view of a loss of $1.5 million to $13 million. Also, revenue is now expected to come in at $485 million to $505 million, up from $450 million to $470 million.

The company also forecast better-than-expected results for the second quarter, saying it will post earnings of five cents a share, compared with its prior expectations of a loss. Also, revenue is expected to be $124 million to $125 million, up from WebMD's previous view of revenue in excess of $115 million.

"Additionally, while not impacting our increased 2013 guidance, we are experiencing significant new commitments for our private portal offerings, including the previously announced contract with Blue Cross and Blue Shield Association Federal Employee Program, which are expected to generate revenue beginning in 2014," said David J. Schlanger, the company's interim CEO.

WebMD relies on major drug companies to power advertising and sponsorship revenue for its public website, which targets consumers, and a private portal targeting health-care professionals.

In May, the company said its first-quarter loss narrowed as it posted revenue growth and lower expenses.

Shares closed Thursday at $26.96 and were inactive premarket. The stock is up 88% so far this year.

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